First, the firm suffered an embarrassing rejection of its capital deployment plans by the Federal Reserve for the second time in three years. The Fed objected to the capital plans due to certain “qualitative” reasons.

The CEO on the call said the firm is working on “industrial strength solutions” to bridge the gap between the Fed and Citi. Gene McQuade, the 65-year-old who was due to step down as CEO of the Citibank unit, will lead the effort. Citi won’t resubmit its plans for this year and will instead plan for the 2015 process.

On Monday, CFO John Gerspach revealed a second similar issue at a supplier to Mexican oil company Petróleos Mexicanos, or Pemex. This second potential fraud was under $30 million, said the CFO but did not disclose the name of the supplier.

Story Conversation

About The Tell

The Tell is MarketWatch’s fast and engaging look at trends and themes in the day’s markets. Drawing on our reporters, analysts and commentators around the world, as well as selecting the best of the rest online, The Tell is all about the pulse of the markets through news, insight and strategic information to help you make the best investing decisions. Got a tip? Tell us at TheTell@MarketWatch.com